The US Federal Transit Administration (FTA) has issued a notice of funding opportunity (NOFO) for approximately $1.5 billion in grants that are specifically aimed at supporting state and local efforts to modernize public bus services across the nation.
The funding will be allocated through two primary programs: the Grants for Buses and Bus Facilities Program and the Low or No Emission Grant Program. The Grants for Buses and Bus Facilities Program provides financial assistance to public transit agencies for various purposes, including the purchase, rehabilitation, and replacement of buses and vans.
For FY2025, an estimated $1.1 billion has been authorized under the Low or No Emission Grant Program, with an additional $390 million specifically allocated for the Grants for Buses and Bus Facilities Program. This year’s Notice of Funding Opportunity (NOFO) introduces notable changes compared to previous requirements. It explicitly removes funding priorities that were previously related to climate change, sustainability, environmental justice, and diversity, equity, and inclusion (DEI). Instead, the Federal Transit Administration (FTA) is now prioritizing transit agencies that can demonstrate how their proposed projects will enhance transportation accessibility for families with young children, with a particular focus on improving their access to employment, healthcare, and retail services.
Applications for this significant funding opportunity must be submitted electronically through Grants.gov. The deadline for submissions is July 14, 2025.